Ford Motor Co. stated Monday that it has inked a preliminary deal to purchase lithium from a Lake Resources facility in Argentina, the automaker’s first public announcement of where it will acquire the metal for electric vehicle batteries.
Ford is making a significant bet on direct lithium extraction, or DLE, a relatively new class of technologies that extract the metal from brines and use significantly less deal than open-pit mines and evaporation ponds.
General Motors, BMW, Stellantis, and other Ford competitors have signed their own supply agreements with companies that want to utilise DLE technology.
Ford intends to purchase 27,000 tonnes of white metal yearly from Lake’s Kachi project in northern Argentina, which is being developed in collaboration with privately held extraction firm Lilac Solutions Inc.
Lilac’s technology, like all DLE technologies, has not yet demonstrated commercial viability, despite backing from Bill Gates’ Breakthrough Energy Ventures and other prominent investors.
Lake and Ford’s agreement is non-binding and would need to be completed in order to include a definite delivery schedule.
In February, Ford CEO Jim Farley stated that his business was negotiating deals to secure the supply of critical raw materials for batteries, including lithium, nickel, rare earths, and copper.
“This is one of several agreements we are pursuing to assist Ford in securing raw materials to support our ambitious electric vehicle acceleration strategy,” Ford spokesperson Jennifer Flake said.
Lake Resources, situated in Sydney, is listed on the Australian Securities Exchange, which mandates public disclosure of supply agreements.
The Kachi project, which will be located in northern Argentina near the Chilean border, is anticipated to cost approximately $540 million and will be completed by 2024.
Lilac’s process requires 11 tonnes of water to create one tonne of lithium. Lilac has indicated that it may employ a desalination plant to filter brackish water in order to avoid the consumption of potable water.